We are pleased to launch the fifth edition of the Asia Pacific Renewable Energy Insights covering the key regulatory, policy and market developments in all key markets in APAC at a time when global energy markets are facing unprecedented challenges.
Geopolitical hostilities, supply constraints at a time of rebounding energy demands post covid-19 and other factors have led to extraordinary volatility in energy prices and a focus of market participants on inflationary pressures and energy security. All of this at a time where environmental, social and governance (ESG) issues remain front of mind and the transition to a lower carbon world continues to gain momentum.
The above could apply to many (perhaps all) parts of the world but is especially pertinent in Asia Pacific. Here, the pace of development and investment in renewable energy continues to outstrip other parts of the world supported by rising populations, robust economic growth and the greenfield nature of the power market in the region underpinned by relatively attractive government support initiatives and political impetus for building new infrastructure.
Our experience over the past 12 months reflects what we are seeing in terms of major themes in the sector, including:
- The continued rise of offshore wind in North Asia, including as Japan, Korea, Vietnam and other new markets (notably Australia and the Philippines) look to build on the success of the Taiwan story. We have acted on almost all closed project financings for offshore wind in these markets and continue to be busy working on a range of ongoing projects in these markets.
- New investors entering the Asia Pacific, including strategic developers seeking new opportunities away from their existing markets and an upsurge in interests from financial sponsor clients, including specialist energy and infrastructure funds. This has increasingly involved innovative investment platforms involving the transfer of existing assets and arrangements for the joint acquisition and funding of future opportunities.
- The development of innovative financing approaches to support renewables projects, including portfolio structures, holdco financings, green bonds and other solutions which are tailored to the specific requirements of the sector.
- Continued focus on new and emerging technologies such as green hydrogen (including in Japan as an export target for leaders in this space such as Australia) and utility-scale batteries (linked to renewables projects which being explored in Korea among others) in each case which are likely to accelerate the renewables story and attract further international investment.
Our report covers the following key Asia Pacific jurisdictions - Australia, Mainland China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.
We hope you find this guide is informative and helpful and we always welcome new discussions about ways we can contribute to your ambitions in this dynamic and exciting sector.